September 23, 2016

On September 23, 2016, The Williams Companies, Inc. (NYSE: WMB) and Williams Partners L.P. (NYSE: WPZ) announced the completion of the sale of their Canadian natural gas liquids (NGL) midstream businesses (Williams Canada) to Inter Pipeline Ltd. (TSX: IPL) for combined cash proceeds of C$1.38 billion.

The Williams Canada business includes two liquids extraction plants located near Fort McMurray, Alberta, a fractionator near Redwater, Alberta and a 420 kilometer pipeline system that connects these facilities. The two extraction plants have capacity to recover approximately 40,000 barrels per day of NGL and olefins from upgrader offgas, a gas stream created when oil sands bitumen is heated to high temperatures through an upgrading process. The liquids mix is then separated into marketable products at the Redwater fractionator and sold across North America.

The business also includes the potential construction of a C$1.85 billion propane dehydrogenation facility located near Redwater, Alberta, which will produce polymer-grade propylene using propane derived from oil sands offgas as feedstock.